Cohen Financial announced Friday it will merge into the Pillar Financial, LLC platform. The transaction is expected to close at the end of 2013. No changes in staffing or key operations are planned. Terms of the transaction were not disclosed.
“The addition of Pillar Financial’s lending products offer us a fuller array of products, services and resources in support of our focus on our client-centric approach of representing users and providers of capital,” said Jack Cohen, Chief Executive Officer of Cohen Financial.
The loan servicing and brokerage units will retain the Cohen Financial name and will be run by the existing Cohen Financial management team. Cohen Financial’s owners, including Mariner Real Estate Management and Cohen Financial senior management, will hold a significant ownership interest in the combined business.
As an independent, third-party service provider, Cohen Financial is a national distribution company representing users and providers of commercial real estate capital, bi-directionally. As a lender, Pillar Financial offers multi-family and commercial loan products nationally. The merger is a synergistic combination of independent platforms to create a broader, more competitive business in an evolving commercial real estate industry.
“Cohen Financial has been diligent in building a scalable, highly-rated servicing platform that is poised for continued growth,” said Tim Mazzetti, Executive Vice President and Head of Cohen Financial’s Loan Administration Business. “Over time, we will support all of Pillar Financial’s lending products.” Recently, Standard & Poor’s raised Cohen Financial’s special servicer rating to “Above Average” and affirmed the “Above Average” primary servicing rating.
Manny Brown, Chief Operating Officer and Executive Vice President of Cohen Financial Capital Markets notes, “Our loan origination teams will continue to focus on the best capital markets solutions to meet our borrower’s unique business plans. This priority will not change. Our clients will have improved access to Pillar Financial’s product offerings, including direct access to Fannie Mae and HUD capital, in addition to our existing array of capital providers across the industry.”